Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

Traditional Grocery Retailers in Japan

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Executive Summary

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

PROSPECTS

Traditional grocery retailers faces harsh environment

The traditional grocery retailers channel continues to see its position in the market weakened by the expansion of modern retailers, including convenience stores, supermarkets and drugstores, all of which offer a broad range of products that encroaches on traditional grocery retailers’ core offer. Independent small grocers are being challenged in terms of price, accessibility and product range, encouraging some independent owners to shift their businesses to operate under franchise in major convenience store chains.

Local neighbour business continues to suffer

Independent small grocers are facing a declining consumer base due to the expansion of major shopping centres and a shrinking and ageing population. Many small independent grocery stores located on shopping streets are being forced to shut down leading to concern about “shuttered streets”.

Some hope for specialists

While independent small grocers are struggling as rival modern grocery retailing formats and online retailers outdo them in terms of pricing, product offer and convenience, specialist traditional grocery retailers continue to meet with some success. Food/drink/tobacco specialists are tapping into upmarket demand trends underpinned by factors such as interest in gourmet products, rising health-awareness and premiumisation in alcoholic drinks.

COMPETITIVE LANDSCAPE

Channel remains fragmented

Comprised of independent small grocers and food/drink/tobacco specialists, the traditional grocery retailing channel remains highly fragmented. Yamaya Corp was the only company with a more than negligible share of traditional grocery retailing in terms of outlet numbers and value sales in 2018.

Opportunities for leader

While increasing consumer health-awareness is contributing to an ongoing decline in volume consumption in alcoholic drinks, Yamaya maintained positive growth throughout most of the review period. However, it saw current value sales fall in 2018, with demand further dampened by the amendment of the Liquor Tax Law in June 2017, which led to price increases in beer.

The usage of social media and content marketing

The importance of content marketing is widely recognised in Japan, with small independent business owners, as well as large-scale companies, using social media for brand promotion. While the traditional grocery retailers channel faces intense competition in the current retail environment, there are some successful cases of operators benefiting from using social media such as Line, Facebook, Instagram and Twitter as marketing tools.

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